Lattice Semiconductor Takes Additional Action to Reduce Operating Expenses; Company to Discontinue Millimeter Wave Business to Focus on Core Business Opportunities

PORTLAND, Ore.--(BUSINESS WIRE)--Jul. 18, 2018--
Lattice Semiconductor Corporation (NASDAQ:LSCC), a leading provider of
customizable smart connectivity solutions, announced the Company will
discontinue its millimeter wave business, which is expected to result in
approximately $25 million of primarily non-cash restructuring and
impairment charges in the second quarter of 2018, and an annualized
reduction in operating expenses of approximately $13 million. The
Company does not expect a significant impact to its potential full year
2018 revenue due to strength in other areas of its business. Lattice is
committed to supporting customers’ product and support requirements
during the transition period.

Glen Hawk, Lattice Semiconductor’s Interim Chief Executive Officer,
said, "After careful evaluation, millimeter wave was determined to be a
non-core business, unable to achieve the required near-term scale to be
profitable or to warrant any further investment. We considered various
strategic alternatives for this business but none proved to be viable.
We have taken this concrete action to further sharpen our focus on the
compelling opportunities in our core business. We continue working to
further improve operational efficiencies and to accelerate revenue
growth of our existing semiconductor solutions into attractive control,
connect and compute applications.”

2Q 2018 Results Conference Call

Lattice will provide further elaboration on today’s announcement when it
holds its fiscal second quarter 2018 results conference call on
Thursday, July 26, 2018. The dial-in number for the live audio call
beginning on Thursday, July 26, 2018 at 5:00 p.m. Eastern Time is
1-888-684-5603 or 1-918-398-4852 with conference identification number
6199158. A live webcast of the conference call will also be available on
the investor relations section of www.latticesemi.com.

A replay of the call will be available approximately 2 hours after the
conclusion of the live call through 11:59 p.m. Eastern Time on August 2,
2018, by telephone at 1-404-537-3406. To access the replay, use
conference identification number 6199158. A webcast replay will also be
available on the investor relations section of www.latticesemi.com.

Forward-Looking Statements Notice:

The foregoing paragraphs contain forward-looking statements that involve
estimates, assumptions, risks and uncertainties. Any statements about
Lattice’s expectations, beliefs, plans, objectives, assumptions or
future events or performance are not historical facts and may be
forward-looking. Such forward-looking statements include statements
relating to: expected restructuring and impairment charges and the
timing of those charges; expected annualized reduction in operating
expenses; and the Company’s expectation of no significant impact to its
potential full year 2018 revenue. Other forward-looking statements may
be indicated by words such as “will,” “could,” “should,” “would,” “may,”
“expect,” “plan,” “project,” “anticipate,” “intend,” “forecast,”
“future,” “believe,” “estimate,” “predict,” “propose,” “potential,”
“continue” or the negative of these terms or other comparable
terminology.

Factors that may cause actual results to differ materially from the
forward-looking statements in this press release include global economic
uncertainty; overall semiconductor market conditions; market acceptance
and demand for Lattice’s new products; Lattice’s dependencies on its
silicon wafer suppliers; the impact of competitive products and pricing;
and technological and product development risks. In addition, actual
results are subject to other risks and uncertainties that relate more
broadly to Lattice’s overall business, including those risks more fully
described in Lattice’s filings with the SEC, including its annual report
on Form 10-K for the fiscal year ended December 31, 2016, and Lattice’s
quarterly reports filed on Form 10-Q.

You should not unduly rely on forward-looking statements because actual
results could differ materially from those expressed in any
forward-looking statements. In addition, any forward-looking statement
applies only as of the date on which it is made. Except as required by
law, Lattice does not intend to update or revise any forward-looking
statements, whether as a result of events or circumstances after the
date of this press release or to reflect the occurrence of unanticipated
events.

About Lattice Semiconductor Corporation:

Lattice Semiconductor (NASDAQ: LSCC) is a leader in smart connectivity
solutions at the network edge, where the “things” of IoT live. Our low
power FPGA, and video ASSP products deliver edge intelligence, edge
connectivity, and control solutions to the consumer, communications,
industrial, compute, and automotive markets. Our unwavering commitment
to our global customers enables them to accelerate their innovation,
creating an ever better and more connected world.